Divorcing With Multiple Real Estate Properties in Orlando

According to Eye on Housing, the state with the largest stock of second homes is Florida. As a result, there’s a relatively strong chance you’ll have to contend with multiple real estate properties during a divorce in Orlando. What happens during this process? Will you need to sell your real estate portfolio? These are questions you might want to raise with your lawyer during the property division process.

Identity Separate Properties

During a Florida divorce, spouses should divide their assets into two main categories: Separate property and marital property. Separate property is not subject to the property division process, which means you get to keep 100% of its value.

If you owned the real estate property prior to the marriage, it might be separate property. You can also keep properties that you acquire after your date of separation. Finally, you can keep a property if you inherited it during your marriage (or at any other time).

All other real estate is marital property. These are properties that you acquired during your marriage, and they are generally subject to the property division process. In other words, your ex will get a share.

Determine Whether Real Estate Has Become a Commingled Asset

It is relatively easy for real estate to become “commingled assets.” This occurs when a real estate property contains both separate and marital property. For example, you might have owned a rental unit prior to signing your marriage contract. If your spouse subsequently started contributing to the mortgage on this rental unit, you may be dealing with a commingled asset.

Another example might involve an inherited property that both spouses subsequently contribute to in some way, either through mortgage payments or renovations.

How to Divide Multiple Properties

Once you understand which properties are “on the chopping block,” you need to determine how you’re going to divide them with your ex. If you want to exert more control over this property division process, consider negotiating with your ex in private. This process is called alternative dispute resolution (ADR), and it gives you more flexibility. If you opt for a trial instead, a judge will decide how to divide your real estate portfolio, and their decision may not be to your liking.

One option is to have each spouse take an equal number of properties. For example, you might own a primary residence and a vacation home. One spouse might live in the vacation home while the other remains in the primary residence. If the homes are valued differently, a cash “buyout” may ensure a fair split. Another option is to sell the entire portfolio and split the proceeds.

Can an Orlando Property Division Lawyer Help Me?

If you have multiple real estate properties and you’re approaching divorce, consider speaking with a property division lawyer in Orlando. These legal professionals can assess your real estate investments and help you determine what might happen to the properties. Continue this conversation with Steve Marsee, P.A. today.

Source:

eyeonhousing.org/2024/09/the-nations-stock-of-second-homes-2/